GM cuts Hummer H2 output

[PontiacJ8]

DETROIT — Slumping sales of the Hummer H2 are prompting General Motors Corp. to put the brakes on production of the once hot-selling sport utility vehicle.

With sales down 25.6 percent this year and stockpiles growing, GM has asked AM General Corp. to cut H2 production by 1,000 vehicles through the end of the year, according to GM spokesman Pete Ternes. “It’s inventory control,” he said.

AM General uses two shifts to build the H2 and the pickup truck version, the H2 SUT, at a plant in Mishawaka, Ind. On Oct. 25, the second shift will be eliminated and workers will be transferred to a neighboring plant that builds the larger Hummer H1 and Humvee military vehicle.

“Nobody’s losing any jobs,” said AM General spokesman Lee Woodward.

About 25,000 H2 models are built annually and the automaker fears a big inventory buildup will challenge the $50,000 vehicle’s exclusivity.

When the rugged military inspired vehicle was introduced two years ago, dealers were hard-pressed to keep them in stock, but demand has cooled off considerably as the novelty of the hulking SUV has faded and overall sales of SUVs have leveled off.

With gas prices above $2 a gallon in some areas, some consumers are scoffing at purchasing one of the most notorious gas-guzzlers on the highway.

Once immune from the industry’s incentive wars, the H2 now comes with rebates and bonuses that can total $1,000 to $3,000 in many parts of the country.

Full Story HERE

[SUPERBADD75]

A high-performance Alpha version of the H1 featuring a more powerful Duramax diesel engine will be introduced in 2005.

make that late 2005 as an '06 model. we are told there will be no 2005 H1.


as far as the rest of this article goes, who didn't see it coming? it was the hottest thing to have, and now it competes against other vehicles in its class. just like all the other "new hip" things to buy, it lost sales as the fire died. it's not a big deal, it was never expected to be a huge voulme truck in the first place, and our lot is definitely overflowing with stock. the ones that are way overstocked are most likely smaller stores with less affluent customers. it's not a Tahoe, it's a $50k plus SUV, and sales will reach a lower level and stay stable after that. it's the way it goes. i expected it.

[mbukukanyau]

Originally posted by SUPERBADD75@Aug 25 2004, 03:10 PM

make that late 2005 as an '06 model. we are told there will be no 2005 H1.


as far as the rest of this article goes, who didn't see it coming? it was the hottest thing to have, and now it competes against other vehicles in its class. just like all the other "new hip" things to buy, it lost sales as the fire died. it's not a big deal, it was never expected to be a huge voulme truck in the first place, and our lot is definitely overflowing with stock. the ones that are way overstocked are most likely smaller stores with less affluent customers. it's not a Tahoe, it's a $50k plus SUV, and sales will reach a lower level and stay stable after that. it's the way it goes. i expected it.

@ Over $50 K that statement is very true.
The H3 might make em better money if they price it like the 4 Runners and Trailblazer

[joshpsf]

I have a feeling the H2 won't be around for too much longer, its very impractical. The hype is over. Perhaps the H3 will do better, but I have my concerns

[mbukukanyau]

Originally posted by joshpsf@Aug 25 2004, 04:17 PM
I have a feeling the H2 won't be around for too much longer, its very impractical. The hype is over. Perhaps the H3 will do better, but I have my concerns

The H2 H1 and H3 could be around for Decades, considering the Wrangler Jeep has been around since the Willy’s of WW2, these things have a knack for lasting a long time…… A worker will be born, get a job build only one vehicle and retire with the same design/Model.
Think of the other famous Military designs, Land rover defend has been redesigned once since WW II and MB G Wagen is the same as it was when it was first conceptualized in 1972. It saw production in 1979 when the first were delivered to Luftwaffe and the panthers on DRG (Cold war West Germany)
So, hold your horses.

[Saturn69]

Originally posted by mbukukanyau+Aug 25 2004, 05:26 PM--></div><table border='0' align='center' width='95%' cellpadding='3' cellspacing='1'><tr><td>QUOTE (mbukukanyau @ Aug 25 2004, 05:26 PM)</td></tr><tr><td id='QUOTE'> <!--QuoteBegin-joshpsf@Aug 25 2004, 04:17 PM
I have a feeling the H2 won't be around for too much longer, its very impractical.&nbsp; The hype is over.&nbsp; Perhaps the H3 will do better,&nbsp; but I have my concerns

The H2 H1 and H3 could be around for Decades, considering the Wrangler Jeep has been around since the Willy’s of WW2, these things have a knack for lasting a long time…… A worker will be born, get a job build only one vehicle and retire with the same design/Model.
Think of the other famous Military designs, Land rover defend has been redesigned once since WW II and MB G Wagen is the same as it was when it was first conceptualized in 1972. It saw production in 1979 when the first were delivered to Luftwaffe and the panthers on DRG (Cold war West Germany)
So, hold your horses. [/b][/quote]
Yes, but a Jeep Wrangler gets more than 9 MPG and doesn't take up 2 parking spots at the mall. It can also go off-road better and isn't ugly as sin. Let the Hummer go! Who would drive a car with the nickname for oral sex anyway?

[mbukukanyau]

Yes, but a Jeep Wrangler gets more than 9 MPG and doesn't take up 2 parking spots at the mall. It can also go off-road better and isn't ugly as sin. Let the Hummer go! Who would drive a car with the nickname for oral sex anyway?

Your post makes no sense.

Do not lie to yourself that a wrangler can outdo H2 or H1 of road. They both have a higher ground clearance and a better suspension set up than Wranglers, plus More powerful vortec's, up front.

[monkeylizard]

Who would drive a car with the nickname for oral sex anyway?

MMMEEEEEEE!

[Camaroz28lover]

Yes, but a Jeep Wrangler gets more than 9 MPG and doesn't take up 2 parking spots at the mall. It can also go off-road better and isn't ugly as sin. Let the Hummer go! Who would drive a car with the nickname for oral sex anyway?

Ok well I hate to tell you but i cant think of very many people who dont like it and dont like its name hey the oral sex thing may even be somthing they think is cool

[GotAWD]

The whole Hummer Brand is just a pop culture thing. im not saying is going to go away, its just going to die down and come back again sometime in the future, they are cool truck. The H2 is one of those status symbols in life just to remind yourself that youve made some cash now look at me and my truck. ive done oil changes on them and driving them are pretty cool, you feel powerfull in one.

besides id like to get some hummer in a hummer.

[Sculptor]

Originally posted by Saturn69@Aug 25 2004, 05:34 PM
Let the Hummer go! Who would drive a car with the nickname for oral sex anyway?

This coming from a guy with a sexual position in his name?

BTW, Jeep Wranglers get around the same mpg's as an H1 (16-19mpg's), which is TRULY pathetic, considering its size, weight, and power compared to the H1. Let Jeep go, it's a thing of the past.

[Saturn69]

Originally posted by Sculptor+Aug 25 2004, 06:32 PM--></div><table border='0' align='center' width='95%' cellpadding='3' cellspacing='1'><tr><td>QUOTE (Sculptor @ Aug 25 2004, 06:32 PM)</td></tr><tr><td id='QUOTE'> <!--QuoteBegin-Saturn69@Aug 25 2004, 05:34 PM
Let the Hummer go! Who would drive a car with the nickname for oral sex anyway?

This coming from a guy with a sexual position in his name?

BTW, Jeep Wranglers get around the same mpg's as an H1 (16-19mpg's), which is TRULY pathetic, considering its size, weight, and power compared to the H1. Let Jeep go, it's a thing of the past. [/b][/quote]
The Hummer is exempt from EPA mileage reporting due to its GVWR in excess of 8,600 lbs., where did you find the mileage rating? Most auto mags list it at between 9-12 average mpg. I don't hate Hummers, I just think it's not a practical vehicle. If someone wants to buy one I don't mind after all it's not my money. But why lament the fact that they aren't selling as well as before it'll just make the ones sold now more exclusive, it's a niche product at best. BTW, I was born in '69, hence the name.

[Tim_M]

Instead of building progressively smaller Hummers, GM should have jumped down two model sizes and constructed a vehicle that is roughly equivalent to the Wrangler in target demographics/price and around the size of the old Landrover D90. Seriously, if you have any doubts about the viability of this market, just consider the volume of Wranger sales, and the electric market response to the new Wrangler extreme. Also, D90s have held their value like Lexus (or better). No other Land Rover does that. Market forces absolutely crave a D90 replacement. With Land Rover's temporary abandonment of that segment, Hummer should target the market before a new Defender arrives. Simply going from H2 to H3 is predictable, and the final product looks just like a smaller H2. I'm not sure that is the enegy injection that Hummer needs.

As far as the H2 is concerned, I think that a diesel option is the bare minimum for the model's long-term viability. A hybrid option should be seriously explored. That stone would kill a lot of birds. It would help deal with ownership costs, public image, and stagnant interest in a model that no longer shocks or amazes.

[Sculptor]

Originally posted by Saturn69+Aug 25 2004, 07:04 PM--></div><table border='0' align='center' width='95%' cellpadding='3' cellspacing='1'><tr><td>QUOTE (Saturn69 @ Aug 25 2004, 07:04 PM)</td></tr><tr><td id='QUOTE'>

This coming from a guy with a sexual position in his name?

BTW, Jeep Wranglers get around the same mpg's as an H1 (16-19mpg's), which is TRULY pathetic, considering its size, weight, and power compared to the H1. Let Jeep go, it's a thing of the past.

The Hummer is exempt from EPA mileage reporting due to its GVWR in excess of 8,600 lbs., where did you find the mileage rating? Most auto mags list it at between 9-12 average mpg. I don't hate Hummers, I just think it's not a practical vehicle. If someone wants to buy one I don't mind after all it's not my money. But why lament the fact that they aren't selling as well as before it'll just make the ones sold now more exclusive, it's a niche product at best. BTW, I was born in '69, hence the name. [/b][/quote]
I've spoken with plenty H1 owners, mpg range from 12-18 depending on the usual factors. (speed, fuel they use, etc) Considering most run on diesel, that's pretty damn good.

It's a completely practical vehicle, infact it's the most practical vehicle in existence for what it was meant to do. OFF-ROAD. It's a suprisingly great city ride too.

[ibechip]

I think Hummers and full-size pickups will be the best place for GM to start with it's hybrids.